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Process for designing the SC (Identifying the current and future states…
Process for designing the SC
Identifying customer and
business requirements
Researching organizational and SC strategy for customer and business requirements
Clarifying what degree of responsiveness and efficiency is required by stakeholders
Performing market research
Gathering information on customers' product or service requirements
Developing an understanding of how customer and business requirements will change over the product's life cycle
Understanding when customer and business requirements necessitate development of reverse or specialized SC
Determining when business requirements need to be satisfied through collaboration with SC partners
Determining business requirements for technology, data, and communication channels internally and between partners
Identifying the current and future states
collecting historical data for
several periods up to the present
Actual inventory levels per
location and in transit
Inventory ordering methods
and communications
Actual transit times and costs
Facility costs
Efficiency, responsiveness, and other metrics and key performance indicators
Technology usage, usefulness, and administrative costs
Mapping process flow for manufacturing and logistics for current products
Analyzing inventory trends and ordering methods
Modeling the SC in its as-is state using mathematical models, process flowcharts, and descriptive techniques
Developing a product or service design future state that will accommodate customer and business requirements and SC strategy
Using SC network optimization tools such as network modeling and operations research to design a SC that meet strategic goal including responsiveness and efficiency
Developing a technology model for desired information flows, analytic support, and electronic business
Communicating the product/ service and SC designs to stakeholders and gathering feedback
Getting approval for the finalized designs
Documenting the finalized designs
Performing a gap analysis between the current and future states
Comparing the as-is to the to-be state to determine needed changes to
Supplier contracts and expectations
Collaborating agreements and process
Facilities
Product or service design
Production process flows and production lines
Processes , policies, and procedures that incorporate continuous improvement and other forms of reponsiveness
Transportation modes or providers
Inventory policy and ordering methods
Technologies (Adding or retiring)
Suppliers
Communications policies or procedures
Metrics to provide incentives to align with strategy
Estimating the scope of the changes and time and cost involved
Performing a feasibility study and financial analysis to determine the return on investment
Preparing a business plan and getting executive approval for it
Developing an action plan to close gaps
Planning how to develop continuous improvement philosophies in ongoing operational processes, policies, and procedures
Planning how to communicate and manage change initially and over the long term
Developing project charters for all changes to be implemented as projects
Getting approval and funding for each project charter, including the authority to plan projects and expend funds
planning each project to define the integration, scope, schedule, budget, quality, and how to manage human resource, communications, risk, procurement, and stakeholders
Planning the execution, monitoring and controlling, and controlling, and closing process groups for each project
Implementing action plans involve the following steps
Communicating and receiving feedback
Executing, monitoring and controlling , and closing projects using PM
Using change management to change the culture and ensure that project results become standard operating procedure